Atlanta City Council passes $7.5 million in aid to businesses following water crisis

ATLANTA — Thousands of small businesses that suffered financial losses during Atlanta’s water pipe crisis earlier this month will be able to apply for aid from the city by next week.

Atlanta City Council members unanimously passed legislation Monday that dedicates $7.5 million to Atlanta businesses impacted by widespread water outages. This figure was increased from an initial proposal of $5 million, following concerns that the funds were not enough to help all expected applicants.

The money will be distributed through Invest Atlanta and intended for losses not covered by insurance. Businesses can start applying on June 24.

The agency’s CEO and president, Eloisa Klementich, told council members last week that nearly 7,000 businesses were affected by the initial May 31 boil water notice. The ensuing Midtown water break left approximately 3,700 businesses still under boil water notices through June 6.

These businesses range from restaurants and beauty salons to real estate agencies and consulting firms. Johnny Martinez, owner of Joystick Gamebar on Edgewood Avenue, estimated his business lost between $8,000 and $10,000. The company that runs the popular Ponce City Market rooftop restaurants and attractions said it lost $200,000.

“Our administration knows this relief is needed, and together we have ensured that getting money into the hands of impacted small businesses and their employees remains a priority,” Mayor Andre Dickens said in a statement to the outcome of the vote.

Klementich said if every company involved applied for funding, the cost would be about $10 million. But Invest Atlanta estimates that only about 40% of eligible businesses will apply.

The council nevertheless decided to increase the amount. The relief money will come from the Department of Watershed Management’s budget and will be paid for by taxpayers.

“We’re expecting a very strong response from small businesses and we wanted to make sure we had enough funds to cover what we anticipate will be a lot of interest,” said Council Member Matt Westmoreland, who presented the bill.

Another amendment to the original legislation provides that the fund will be closed on June 30, 2025, and any remaining money will be transferred to the Water and Wastewater Revenue Fund.

Council member Marci Collier Overstreet questioned the jump, saying the council can review the legislation and add funds if necessary.

“I just want to make sure it’s justifiable,” she said.

Council member Alex Wan said he would bet that the crisis event would push the application rate above 40%.

“Our water outages have affected a wide range of businesses,” Wan said. “I think our adoption rate on this one is going to be higher.”

“This has been a really traumatic experience and whether your neighborhood was affected or not, we have to think about the city as a whole,” he said.

The Invest Atlanta board plans to vote on the fund on June 20. Applications will be taken for two weeks, from June 24 to July 8. The agency will notify businesses receiving grants the week of July 29.

Councilmember Antonio Lewis also expressed concerns about extending the application period, citing the city’s difficulty obtaining information about water outages in the first place.

“This period is so short,” he said. “I’m just thinking of all the businesses that need it.”

The District 12 council member also called for additional action, creating another similar program for Atlanta residents who suffered personal financial losses due to primary breakups.

“We take care of businesses in the city of Atlanta,” Lewis said. “We have to take care of people.”

The amount of grants will depend on revenue and how long the business has been affected.

To apply, businesses will need to provide a point of sale report from the week before the water main break and then another from the affected week. They will also need to submit an impact statement, their business license, a copy of their insurance policy and other documents.

Westmoreland said the city aims to get funds into the hands of small businesses during the month of July.

“Companies told us loud and clear that timing was important to them,” he said. “And the sooner we can get them dollars, the better.”

(Journalist Mirtha Donastorg contributed to this report.)

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